U.S. crude prices turned negative the first time in history on Monday, with virtually zero buyers turning up for prompt delivery oil in a market woefully glutted by the coronavirus pandemic. West Texas Intermediate crude futures for May delivery fell to a session low of $40.32 per barrel and settled the day at minus $37.63. That meant a notional loss of $55.90 per barrel from its Friday settlement of $18.27.
June WTI, which Investing.com is already quoting as reference for U.S. crude given its outsize volume to May, settled at $20.43 per barrel, down $4.60 or 18.4% from Friday’s settlement. Brent, the London-traded global benchmark for crude, meanwhile, lost $2.51 on its front month June contract to settle down 9% at $25.57. June Brent was at a contango, or discount, of more than $4 to July Brent. Even more important, its differential to WTI — a big trade in oil — was at an unimaginable $63.
“I am worried about the dislocation of the WTI - Brent spread,” Igor Windisch of the IBW Daily Oil Brief said in a note Monday. “The worrying thing is that there is no support line for Brent.” Since WTI futures began trading on the New York Mercantile Exchange in April 1983, the lowest the U.S. crude benchmark had gotten to prior to this was $9.75 in April 1986.
“What this tells you is that there’s just a mega glut of oil out there, that’s not going to be clearing anytime soon,” said John Kilduff, founding partner at New York energy hedge fund Again Capital. “As a matter of fact, we have a big problem on our hands in terms of storage,” Kilduff added. “The storage situation is filling up and refiners aren’t buying, motorists aren’t buying. nobody is buying; so there’s just a tremendous back up of crude oil throughout the system and you have to pay dearly now if you want somebody to take it off your hands.”
Amid the Covid-19 pandemic that’s destroying demand for oil faster than producers can cut, the market has been laser-focused on how much storage is left globally for crude and whether that will run out soon.
Airasia is a strong Malaysia brand name...if no merger then may have govt loans...they will survive this storm...but grow stronger post pandemic? Biz could be sluggish as ppl will be cautious when planning for holidays...avoiding countries with high number of covid 19 cases initially....buying will still be strong as investors move in sensing that AAX will resume flying soon.
Becareful the sharks is looking at ours money ya... especially when the share is about to go warrant at June 2020.. just becareful and keep following the news everyday. This is my advise as I have face some issue before.
The market finds reasons to buy or sell...AA share price started to rise when they said they'll resume flights later this month...yes? Both AA and AAX prices retreated today when MA commented about hurdles to consider when thinking of a merger.
Said refund for flight cancelled is credited to "Credit Account" for future purchase but whole page of Credit Account in white without any information. Complaint becomes useless and remains unresolved, the staff may not give good services as pays may have cut or staff number reduced?
Posted by Jeffreyteck > Apr 22, 2020 8:25 AM | Report Abuse Said refund for flight cancelled is credited to "Credit Account" for future purchase but whole page of Credit Account in white without any information. Complaint becomes useless and remains unresolved, the staff may not give good services as pays may have cut or staff number reduced?
Ya...steel stocks rise because mega projects will proceed....nothing to be happy about as supplying steel to construction projects is their biz nature...but AAX has an extra speculative reason...Merger...this is nothing new either as this rumour has been around for a while....just stay invested in AAX and hope for merger confirmation.
The government's line in the sand has sent an unmistakable message to other businesses to back off.
"The Coalition government's refusal to bail out Virgin Australia sends a clear message to other large businesses not to come begging for taxpayer money.
The government is aware that if Virgin were rescued by Canberra, it would be a green light for other under-siege businesses to lobby for multibillion-dollar bailouts.
Struggling universities, major airports, toll roads and media companies will be watching the Virgin scenario closely to gauge their chances of receiving government support.
By holding the line, Scott Morrison, Josh Frydenberg and Mathias Cormann have sent an unmistakable message to other businesses to back off.
The hard line also recognises that some industries will be permanently damaged by the coronavirus economic crisis, so throwing good taxpayer money after struggling businesses will not be a wise investment."
It's a great article. Who, which business not affected by virus? is Govt. to print money to save everyone then? Long haul, budget airliner is not a feasible business. only idiot govt. listen to Tony's cinderella story. Change name from aax to 2mdb better. wakaka
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Jasonlcs
73 posts
Posted by Jasonlcs > 2020-04-20 16:05 | Report Abuse
AAX vs Airasia, buy which one better? Any sifu can tell?